Quote:
Originally Posted by fundmark19
I think that alot of people are missing the simple fact on why some people chose the 35 yr 5 down route. I had the choice to put 5 or 10 percent down on my first condo. I was going to live in it and then rent it out after that. It did not make any sense for me to put more of my own money into something I was not going to be paying for over the long period. The CMHC fees were not much different between 5 and 10 percent down so you don't gain on that side of things either. With the 35 yr amortization I am able to have more flexibility on my income on the rental property where if I chose a standard 25 yr my rent would be much higher and I would probably have a hard time getting renters. Now I can start at a higher price and negotiate if need be.
For my second home I also did 5 down with 35 years because I am taking advantage of the low interest rates and just increased my monthly payments from the start to what a 25 year mtg would normally be. This way I am still paying my mtg down but if prime goes up I am allready prepared for the higher payments and if something in my life happens where I need that extra 300ish a month I am able to adjust for that.
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How does that work when you go to refinance when your term is up? Could they potentially tell you to pound sand on your rental property and not renew your mortgage?